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Debt collection is a growing business
By Anita |
Workers in India can earn $425 per month calling Americans who are behind on debt payments with the potential for an extra $600 or more per month in bonuses. This is actually a lot of money because the average salary in India is $63 per month. By contrast, American collectors earn $6500 per month. So it’s not surprising that outsourcing debt collection to Indian workers is the latest trend in debt collection.
When a credit card account is in default, the company sells it to a debt collection service for pennies on the dollar. This company calls the debtor and tries to reach a settlement. The collectors earn a commission and bonuses, so the job is much like a sales position.
There’s a potential downside to this for the Indian workers, however. “Collectors are amassing some of the status symbols that probably got their clients into trouble in the first place - new scooters, iPods, Swatch watches and exotic vacations.” It sounds like the Indian debt collectors will soon have to start make collection calls to each other and not just debt-ridden Americans.
Topics: Credit Cards, Debt |